Magellan Midstream Partners L.P. (MMP)

MMP stock forecast: buy or sell

MMP stock outlook

  • Magellan Midstream Partners L.P. Limited stock barely changed -0.29% to close at $40.65 on the stock market today.
  • Looking at the chart, price is drawing an scaled downtrend since last January with lower tops and lower bottoms. shares price lost a -35.15% since the downtrend started.
  • Magellan Midstream Partners, L. P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States.
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Important note:
The opinions contained in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the individual circumstances of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for general educational purposes only

MMP stock chart overview

Should I buy Magellan Midstream Partners L.P. Limited stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is MMP stock a buy?

Currently, Magellan Midstream Partners L.P. Limited stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for MMP in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Magellan Midstream Partners L.P. Limited stock?

"To sell or not to sell", if you are holding Magellan Midstream Partners L.P. Limited shares?. Trading strategies allow us to avoid impulsive decisions based on our sentiments or the noise surrounding the market. When selling, as well as buying, detailed strategies are very easy to follow but are only valid for selling shares in your porfolio, not for selling short MMP stock

A golden rule is that you must never mantain a trade that produces losses greater than those expected at the time of the buy. When to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Magellan Midstream Partners L.P. Limited stock?

In the current situation of Magellan Midstream Partners L.P. Limited there is not any eligible sell setup, so Magellan Midstream Partners L.P. Limited stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Magellan Midstream Partners L.P. Limited stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one brokerage rating was published for Magellan Midstream Partners L.P. Limited

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Magellan Midstream Partners L.P. Limited ratings

Brokerage firmRating
Jun 30th, 2020
TD Securities Strong buy

Technical analysis

Magellan Midstream Partners L.P. Limited continues trending lower since last January, and has accumulated a selloff of -35.15%. The stock drew 2 consecutive lower tops

SMAs overview

Moving averages are simple indicators for traders to detect stock momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Traders use support and resistance levels as a way to find price points on a chart that may behave as barriers, containing the price of a stock to move in certain direction. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue descending until meeting another support level. On the other side, a resistance level is where the price tends to find resistance as it moves up. In the same way, the price is more liable to "rebound" at this level, and if it finally crosses this level, the price will rally more easily until it meets the next resistance

The current resistance levels are:

  • R1: $41.71 (2.61% above)
  • R2: $41.99 (3.3% above)
  • R3: $42.08 (3.52% above)
  • The current support levels are:

  • S1: $40.02 (-1.55% below)
  • S2: $39.97 (-1.67% below)
  • S3: $39.26 (-3.42% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It is made up of three bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band last Thursday, the price rebounded by 0.89%. The price is moving near to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a bullish indicator, as price can move in these levels for many days and weeks

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price changes to detect when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for 1 day (weak signal). The RSI value today was 38.94. Magellan Midstream Partners L.P. Limited stock dropped a 17.75% since that level was lost

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    Earnings and financials

    Magellan Midstream Partners L.P. (MMP) came out with Q1 earnings of $1.26 per share, highly surpassing the Wall St consensus estimate of $1.03 per share. This Q1 report represents an earnings surprise of 22.33%. Turnover was $782.8 million in contrast to $676.7 million forecasted by market consensus.

    This compares to earnings of $0.91 per share same quarter last year, so posted EPS means a gain of 38.46%. Looking at turnover, figures exploded a 24.46% compared to $628.9M same quarter last year.

    MMP posts quarterly earnings report on Thursday next week. Forecasted per-share earnings of %s for this quarter is $0.74. If you own or you are thinking of buying MMP stock, you must be vigilant as earnings reporting day usually has a very high volatility, and price can jump up or down with unsually low liquidity and not honouring your buy or stop-loss orders. You can probably find more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.magellanlp.com.

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